You Need Bulls In Bull Markets

JC Parets
April 11, 2023

One thing I learned years ago is that you need bulls for there to be a bull market.

In other words, as bull markets progress, stocks stop falling in price, and continue to appreciate despite all the negativity.

This is the beginning of the acceptance phase. It's perfectly normal.

There's nothing like price to change sentiment.

And that's exactly what we have in the current environment.

More and more stocks keep going up and making new highs. Fewer and fewer stocks have been going down and making new lows - where almost no stocks are doing that, at this point.

You can see this sentiment shift reflected in the average bulls and bears among Individual Investors (AAII) and Advisors (II). Remember, these sentiment readings are coming off some of the most bearish extremes in history.

As the bull market has emerged during the back half of last year and now into 2023, you can see the Average of bulls making higher lows and higher highs.

You're seeing the opposite plotted in Average bears.

The bottom line is this: You need bulls in bull markets to buy stocks. That's just math.

And we're seeing exactly that.

Premium Members make sure to access our favorite opportunities in this market detailed inside our Rangefinder App.

Email me if you have any questions at all.

We love to hear from you.

JC

 

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